Economic Trends/Outlook in Hungary
Hit by the financial crisis head-on, the country was saved from banckruptcy by the International Monetary Fund. After experiencing a deep recession in 2009, the country returned to a timid growth in 2010, estimated at 0.6% of the GDP and driven essentially by exports.
The newly-formed Orban government announced a 29-point stimulus plan, which aimed to stimulate the economy and reduce the budget deficit, especially through taxing financial institutions (this controversy lead to the premature department of the IMF and the EC). An emergency series of exceptional fiscal and parafiscal measures was also quickly passed, essentially affecting the energy, telecommunications and food distribution sectors.
The economic crisis has worsened the employment situation: according to estimations, in 2010 the unemployment rate increased to 10.8%.
|GDP (billions USD)||129.34e||128.96e||133.68e||140.05e||147.30e|
|GDP (Constant Prices, Annual % Change)||-6.7e||1.2e||2.8e||2.8e||2.8e|
|GDP per Capita (USD)||12,894e||12,879e||13,370e||14,029e||14,777e|
|General Government Balance (in % of GDP)||-0.9e||-3.1e||-4.3e||-3.7e||-3.3e|
|General Government Gross Debt (in % of GDP)||78.4e||80.4e||76.6e||76.9e||77.1e|
|Inflation Rate (%)||4.2||4.9e||4.1e||3.5e||3.0e|
|Unemployment Rate (% of the Labor Force)||10.1||11.2e||11.5e||10.9e||10.7e|
|Current Account (billions USD)||0.52e||-0.63e||-1.55e||-3.40e||-|
|Current Account (in % of GDP)||0.4e||-0.4e||-1.0e||-2.1e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors of Industry
The agricultural sector, which was predominant in the country's economy for many years, now only represents slightly less than 4.5% of the GDP and employs about 4% of the active population. The main crops are cereals, fruits, vegetables and wine.
The industrial sector contributes to one-third of the country’s GDP and is very open to foreign investors. Automobile and electronics sectors are the two main sectors given that they account for 30% of the country's exports and generate 15% of the GDP.
The services sector contributes nearly to two-thirds of the GDP.The global financial crisis had detrimantal effects on Hungarian industries that work on the external market but also on the national market where demand was reduced.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||4.5||32.1||63.3|
|Value Added (in % of GDP)||4.3||29.4||66.2|
|Value Added (Annual % Change)||50.6||-0.8||-1.4|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Moderately free
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministry of Agriculture and Regional Development
Ministry of Economy
CIA World Factbook
- Statistical Office
Hungarian Statistics Office
- Central Bank
Magyar Nemzetti Bank
- Stock Exchange
Budapesti ÉrtéktÅ?zsde / Budapest Stock Exchange
- Other Useful Resources
Hungarian Investment and Trade Development Agency (ITDH)
National Association of Financial Entrepreneurs
Hungarian Banking association
Hungarian Financial Supervisor Authority
- Main Online Newspapers
Népszabadság Online Hirszerzo
- Economic Portals
Napi Gazdaság - only in Hungarian
Heti Világgazdaság - only in Hungarian
Budapest Business Journal - in English
Piac és Profit - only in Hungarian
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